Here’s Why Activision’s Stock is Up While Leap Wireless and Tesla Motors Deep in the Red
Activision-Blizzard (NASDAQ:ATVI): The video game publisher and developer reported its results for the second quarter Wednesday. Net income for the company rose to $335 million (29 cents per share) vs. $219 million (17 cents per share) in the same quarter a year earlier. This marks a rise of 53% from the year earlier quarter. Revenue rose 19% to $1.15 billion from the year earlier quarter. The company beat the mean estimate of 5 cents per share and topped the revenue estimate of $601.9 million. ATVI stock is up 2.37% in early trades.
Chief Executive Officer Robert Kotick said, “Looking to the balance of the year, while we have numerous releases we believe our audiences will be especially excited by three key properties – Call of Duty: Modern Warfare three, our new online service Call of Duty Elite and Skylanders Spyro’s Adventure – all of which are shaping up to be incredible.”
Leap Wireless International (NASDAQ:LEAP): The wireless communications carrier reported its results for the second quarter. The company said its loss widened to $65.2 million (85 cents per diluted share) from $18.2 million (loss of 24 cents per share) in the same quarter a year earlier. Revenue fell 14% to $760.5 million from the year earlier quarter. Leap Wireless fell short of the mean analyst estimate of a loss of 48 cents per share. It fell short of the average revenue estimate of $780.3 million. The stock is down -4.38% so far in trading.
“During the second quarter, the business delivered a substantial improvement in adjusted OIBDA margin, which increased 600 basis points from the first quarter of 2011, as we had anticipated,” said Doug Hutcheson, Leap’s president and chief executive officer. “We surpassed last year’s gross voice additions, and net voice additions improved by more than 100,000 customers year-over-year. New and existing customers continued to select our smart and Muve Music devices, which comprised nearly 50 percent of new handset sales during the quarter.”
Tesla Motors (NASDAQ:TSLA): Tesla designs, develops, manufactures and sells high-performance fully electric vehicles and advanced electric vehicle powertrain components. The company reported its earnings for the second quarter, with a loss that widened to $58.9 million (60 cents per diluted share) from $38.5 million (loss of $5.04 per share) in the same quarter a year earlier. Revenue rose more than twofold to $58.2 million from the year earlier quarter. TSLA reported an adjusted net loss of 53 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 55 cents per share. It beat the average revenue estimate of $48.8 million. The stock is down -2.57% premarket.